Angel investors: who they are and how they help startups
Angel investors are individuals who put their own money into very early startups, often before VC firms do. How angels work and what founders should know.
An angel investor is a person who invests their own money in a startup at a very early stage.
Angels vs VC firms
- Angels invest personal money, usually smaller amounts, often before a product is ready
- VC firms invest other people's money, usually larger amounts, once there are signs of growth
What angels often bring
- Early money to build a first version
- Advice from their own business experience
- Introductions to customers and later investors
Before taking angel money
- Agree clearly how much of the company they get
- Put the deal in writing with a lawyer
- Check what involvement they expect
Related
- What is venture capital?
- How to write a pitch deck